Nothing says summer like a deluge of time-off requests. Two-thirds of adults take vacation between Memorial Day and Labor Day, according to a survey by AAA. Managing multiple requests for time off—and making sure the organization doesn't suffer—requires a clear vacation policy that's communicated to all employees.
Without a written, explicit policy, a manager will be left to make ad hoc decisions as requests arise. That can lead to inconsistent treatment, such as when a star employee is allowed to take a last-minute trip while others are asked to give at least a week's notice. One manager might allow her team to carry over unused vacation to the next year, while another enforces a use-it-or-lose-it stance.
An unclear vacation policy and ad hoc approval process could also cause the company to suffer when multiple employees take off the same days. Or it could lead to resentment when vacation requests are denied without a clearly communicated understanding of how many people can be out at one time. Those situations aren't just damaging for productivity—they can be a serious drag on employee morale and future collaboration.
Here are a few factors to keep in mind when drafting vacation policies:
The number of days is just the beginning
Whether they're given two weeks or three might seem top of mind when an employee accepts a job offer. But the truth is that there are many more parameters that an HR team needs to consider when actually managing paid time off. For instance, are employees allowed to request and take unpaid leave? Can they request to take all of their vacation at once, say for a lengthy trip? Are half-days allowed as paid vacation—or even quarter days? All of these questions need to be considered in advance and carefully detailed in the company's vacation policy.
Accrued versus ballooned time
All employees should know whether their time off is accrued as they work throughout the year or whether they're entitled to all of their vacation at the start of the calendar year. If their vacation time is accrued, they should have access to the amount of vacation they're currently entitled to as well as the calculation for determining how quickly the days accrue. Understanding upfront that all vacation isn't available on January 1 can prevent an employee from making a costly mistake, like booking a three-week cruise for early February.
Planning for unused time
More than 40 percent of American workers didn't take a single day of earned vacation in 2014, according to a survey by travel intelligence firm Skift. So your vacation policy can't stop at how to use vacation—it must also include what happens to any vacation time that isn't used by the year's end. It doesn't have to be an all-or-nothing policy for losing or rolling over time. Many companies set a limit on how many days can be rolled over each year.
Managing requests
Written policies set guidelines and expectations for employees, but they can also shape manager behavior. Creating a detailed employee handbook and having it available on the Internet or as a handout is key to having both management and employees clearly understand company policy on a variety of topics. As part of the vacation policies, explain how employees should make formal vacation requests and to whom. But also include information such as how long the manager will typically take to respond to such requests to prevent time-off inquiries from languishing unanswered.
Encouraging vacations
Taking time away from work can make employees better at their jobs: Vacation has been shown to boost employee morale and productivity and is correlated with fewer heart problems and fatigue, according to the Wall Street Journal. Some companies are pushing back on employees who don't take any time away by requiring a vacation minimum. While such policies aren't yet widespread, HR teams may want to consider including a similar clause if employee burnout is a major issue at the company. Being explicit about such a stance can dissuade employees from putting off their vacations indefinitely.